Dodla Dairy (DODLA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 consolidated revenue reached ₹10,250.41 million, up 13.7% YoY, driven by strong volumes, Osam Dairy acquisition, and steady execution despite challenging weather and elevated procurement costs.

• EBITDA margin was 7.7% and PAT margin 6.7% for the quarter, with growth led by liquid milk and product sales, while bulk sales of SMP and butter dropped sharply.

• Africa operations delivered 34.5% YoY revenue growth, with plans for greenfield expansion in Uganda and continued strong performance in Kenya.

• One-time provision of ₹57 million for revised labor code offset by a tax reversal of ₹219 million, positively impacting PAT.

• Acquisition of Osam Dairy for ₹2,710 million was completed in August 2025 and consolidated from that date.

Financial highlights

• Q3 FY26 operating revenue: ₹10,250.41 million (up 13.7% YoY); 9MFY26 revenue: ₹30,507.29 million (up 8.5% YoY).

• Q3 FY26 EBITDA: ₹793 million (7.7% margin, down from 10.6% YoY); 9MFY26 EBITDA: ₹2,546 million (8.3% margin).

• Q3 FY26 PAT: ₹687.37 million (6.7% margin, up 8.1% YoY); 9MFY26 PAT: ₹1,972.73 million (6.5% margin).

• Gross margin declined to 26% from 28.2% in Q3 FY25 due to higher procurement costs not fully passed to customers.

• Standalone revenue from operations for Q3 FY26 was ₹8,215.26 million; standalone net profit was ₹568 million.

Outlook and guidance

• Margin pressure expected to persist in Q4 FY26, with revival anticipated in summer as demand and pricing improve.

• Price hikes of ₹2–3/liter are planned as summer demand rises, targeting average realization of ₹63–64/liter in India.

• Value-added products (VAP) share targeted to reach 30–32% of portfolio over time.

• Management remains confident in growth trajectory, focusing on operational efficiencies and long-term growth in East Africa.

• The company continues to monitor regulatory changes, especially regarding the New Labour Codes, and will adjust accounting treatment as required.